Being audited by the IRS or FTB? Thinking you’re going to represent yourself......You’d better check yourself before you wreck yourself!
6 Months ago....
Potential client after my consultation and submission of a bid for my services on a tax issue with the Franchise Tax Board:
“Mr. Sims, thanks for the consultation, it was very helpful. I’m a good businessman and I have an advanced degree. I believe I can handle this issue myself.”
“ Mr X, the rules for doing business in California can be a little complex and tricky. Be careful how you respond you could make the situation worse.”
Yesterday’s email from potential client:
“Mr Sims, after trying to work with the FTB the amount of proposed additional tax has more than doubled from $30,000 to $65,000. Do you work on a contingency fee basis?” (Not the real numbers, but a lot of money....more)
“Mr X, didn’t I tell you that you could make it worse if you answered incorrectly. Ah, no on the contingency fee question. I must be paid in full, in advance.” (Yeah, I said it like that)
The thing is the guy tried to answer questions based on what he thought “not doing business” represented. Incorrect/inaccurate statements made on his part, trying to get the favorable determination. It’s going to be tough to reverse what he’s done... but potentially doable.
Tax Tip: If you are dealing with a complex issue trying to represent yourself before the IRS or FTB you could make things much worse! Seek professional help, sure it costs, but usually saves you in the long run. P.S. If you don’t understand it..... it’s complex!
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